More affordable personal loans to help build your credit.

Affordable Phone Plans to Avoid Bad Credit

Smartphones are more essential than ever these days. You might even be reading this article on one right now! Unfortunately, they can also get pretty expensive.

And if you don’t pay your phone bill on time, it can actually end up making your credit score worse. So how can you get the vital phone services you need without risking bad credit?

Thankfully, there are likely affordable phone plans within your budget, but you have to be careful! Some potential providers may attempt to take advantage of your situation. That’s why we spoke to the experts to make sure that your phone plan isn’t a PHONY plan (sorry) (just kidding, we’re not sorry).

Consider lesser known carriers.

You probably see a lot of ads from the major cell phone carriers. Your Verizons and Sprints and AT&Ts, if you will. But what about the carriers that might not be able to afford massive advertising budgets? The ones who never had the chance to ask if you could hear them now. When comparing pricing possibilities, it can be worth looking at the carriers less often considered. That’s what Gabe Lumby of Cash Cow Couple (@CashCowCouple) did.

“We really like Republic Wireless as a cheap phone plan option and have written a detailed review on our site about the service,” Lumby told us. “I’ve personally used the service for over 3 years and outside of some occasionally spotty coverage, I have no complaints. We only pay $31 and change for both my wife and I’s cell phone plans. Here is a link to their pricing page.

“Regardless of which carrier is chosen, it is smart to look at some of the new players in the space when looking to save money. Some other options include Straight Talk and Virgin Mobile.

“There are other competitors as well, but my advice would be to look at some of these lesser known options instead of your large carriers.”

Cut down on data usage.

This is a pretty obvious tip, but it’s still important. Unless you have an unlimited data plan, which can be a huge expense in and of itself, you have to be very careful about not going over your data or you’ll face grim punishment (in the form of higher fees). But you don’t need to take our word for it. Here’s what Lumby said: “Also, try hard to curb your data usage. Many people have large data plans when they could be using free wifi at their work, restaurants, etc. Data is the huge money drain.”

Beware the “free phone”.

There’s no price better than free, which is why you should be immediately suspicious of anyone offering you a free phone. We aren’t experts, but we’re pretty sure there are all sorts of expensive electronics and tiny computers that go into the creation of a phone, so no one is going to be giving you one unless they’re expecting to get something out of it.

Brett Graff (@BrettGraff), The Home Economist and author of “Not Buying It,” offered this warning: “If the phone is for an elderly person, you can apply to the FCC for a credit towards a landline or a cell phone. Otherwise, don’t fall for the free phone. God it’s tempting, I know. But prices for cell phone and wireless services are dropping constantly and you’re in a better position to negotiate without a contract.

“Many times, that ‘free’ phone isn’t free at all, it’s divided into monthly payments tacked on to your bill. What’s more, if you want to really save, you can buy an inexpensive phone that matches your plan almost anywhere. Then you must shop around to find the lowest prices but remember what those prices include and always—always—check your bill. Third party providers are excellent at slipping fees on, so look for anything unusual such as ringtones or horoscopes that you didn’t order. The most common cramming fee is for $10.99, so if you’re charged that amount for a service you don’t want, call and complain because you’ve likely been scammed.”

“In the United States, smartphone plans can range upwards of $100/mo. Many companies advertise a great price or ‘free phones’ but it has become almost an industry standard to charge hidden fees (on top of what the customer knowingly agreed to when signing the contract).

‘No contract’ cell phone plans that lock the customer into an ‘agreement’ when financing the new phone.

Many larger carriers charge up to $40/mo. in what they call a ‘line access fee.’ This is literally an additional fee to have a phone number (above and beyond the advertised price).

Many prepaid wireless stores are now charging a ‘Service Convenience Fee’ to pay your bill in-store with a live agent.

Other carriers and Mobile Virtual Network Operators offer, ‘Unlimited Data’ that is capped or throttled when you hit the LIMIT a.k.a. ‘Reasonable Usage Policy CAP.’”

McCoy also offered some additional tips for saving on your cell situation:

“Tips that can save you a LOT of money on your phone bill:

If at all possible, save up and pay cash for your phone instead of making payments. If you’re convinced that you must have a new phone but can’t afford it, even a high-interest credit card is cheaper than financing through a cellular retailer.

If you can make due with a used/refurbished phone, you can save a lot of money as well.

Just connecting to WiFi when you’re at home, work, school or the local coffee shop can save you money!

Mobile Data is the most expensive part of your phone bill. Use these tips to Save Mobile Data and you can also save a lot of money: https://BestCellular.com/SaveData/”

You should also read about and see if you might qualify for the Lifeline Program, which offers subsidized phones based on need. Remember that getting some help is never wrong if you need it, especially if it keeps you from getting bad credit or turning to payday loans.

Take all of this advice together, and you’ll be talking on the phone, without losing your home!

Do you have some tips of your own for finding an affordable phone plan? We’d love to hear about it! You can shoot us an email by clicking here or you can find us on Twitter at @OppLoans.

Gabe Lumby is the CMO at Cash Cow Couple(@CashCowCouple) where he helps get the word out on how readers can build their best financial life. In his free time, he enjoys spending time with his family and crappie fishing the local waterways of Southwest Missouri.

Best Cellular (@BestCellular) is a Quad-Carrier Mobile Virtual Network Operator that uses Every Tower from Every Major Carrier in the USA. This allows us to offer the best possible prepaid wireless coverage to almost every customer in America. Extensive technical resources and cutting edge developments like these allow us to offer unmatched service to dealers and customers alike!

In AK, AZ, FL, IN, KY, MI, and OK, all installment loans are originated by FinWise Bank, a Utah chartered bank, located in Sandy, Utah, member FDIC.

CA residents: Opportunity Financial, LLC is licensed by the Commissioner of Business Oversight (California Financing Law License No. 603 K647).

DE residents: Opportunity Financial, LLC is licensed by the Delaware State Bank Commissioner, License No. 013016, expiring December 31, 2018.

NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

Based on customer service ratings on Google and Facebook. Testimonials reflect the individual's opinion and may not be illustrative of all individual experiences with OppLoans.

* Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

Rates and terms vary by state. An example of an OppLoan is $1,000 with 17 bi-weekly payments of $81, and an APR of 99%.